Franklin Advisers, Inc., is a wholly owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment organization operating as Franklin Templeton Investments.Franklin Templeton provides global and domestic investment management services through its Franklin, Templeton, Mutual Series and Fiduciary Trust subsidiaries. The San Mateo, CA-based company has over 50 years of investment experience and approximately $322 billion in assets under management as of November 30, 2003. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

FRANKLIN UNIVERSAL TRUST (002) ASSET ALLOCATION @ 11/30/03

SECURITY

MARKET VALUE

PERCENTAGE OF FUND

Corporate Bonds

$152,725,938

68.82%

Convertible Bonds

$4,720,768

2.13%

Utilities Stocks

$46,996,826

21.17%

Natural Resources Equities & Preferred Stocks

$2,398,319

1.08%

Misc. Equities & Preferred Stocks

$5,512,202

2.48%

Foreign Denominated Corporate Bonds

$0

0.00%

Foreign Gov't U.S. Dollar Denominated Bonds

$8,861,188

3.99%

Foreign Government Agencies

$734,504

0.33%

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Total Gross Market Value

$221,949,745

100.00%

TEN LARGEST HOLDINGS

MARKET VALUE

PERCENTAGE OF FUND

Southern Co.

$4,975,900

2.24%

Millicom International Cellular

$4,789,143

2.16%

FPL Group

$4,448,500

2.00%

Dominion Resources

$4,218,900

1.90%

United Mexican States

$3,878,188

1.75%

Republic of Bulgaria

$3,738,250

1.68%

Gulfterra Energy

$3,540,000

1.60%

Legrand S.A.

$3,495,000

1.58%

D.R. Horton

$3,427,500

1.54%

Hollywood Park

$3,423,750

1.54%

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Total

$39,935,131

17.99%

% OF GROSS ASSETS IN DEFAULT:ISSUER

MARKET VALUE

PERCENTAGE OF FUND

Ameriserve Food

$500

0.00%

Atherton Franchise

$405,641

0.18%

Century Communications

$2,456,250

1.11%

Key3Media

$62,500

0.03%

Magellan Health Services

$2,780,000

1.25%

Ormet Corp.

$800,000

0.36%

Pindo Deli

$645,000

0.29%

Poland Telecom

$300

0.00%

PSINet

$217,250

0.10%

XO Communications

$25,000

0.01%

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Total

$7,392,441

3.33%

Note: The value of these defaulted securities is reflected in the fund's net asset value.
All percentages are rounded to two decimal places.